Collections Account / Credit Score

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Replied by FrankN on topic Re: Collections Account / Credit Score

I am not sure that is a hard and fast rule. That would need to be looked at on a case by case basis.
2 years 9 months ago #1

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Replied by Breakinger on topic Re: Collections Account / Credit Score

This is a very interesting topic. I don't think a lot of people know that if an account is included in your bankruptcy, but is still showing up on your report, that you shouldn't pay it. I would be one of those people to see that and want to get rid of it as soon as possible. So, if it isn't included in your BK then you should only pay it off in full? Will this still end up hurting your credit or will it have the reverse effect on it?
2 years 10 months ago #2

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Replied by djames on topic Re: Collections Account / Credit Score

I believe if they didn't include it when filing, then the debt would remain valid. I would say that you should discuss your options with the debt holder to see the best way to get this paid off. Now that you've made a payment, it shows you acknowledge the debt and agree you owe it, so you're stuck with it now.
3 years 9 months ago #3

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Replied by Wanderer on topic Re: Collections Account / Credit Score

Grats SAR1954 ... you have really been on the credit roll!
3 years 9 months ago #4

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Replied by FrankN on topic Re: Collections Account / Credit Score

That is great to hear! That is a great example of a success story. Honestly, you should be very very happy with that outcome!
3 years 9 months ago #5

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Replied by DonRon on topic Re: Collections Account / Credit Score

SAR1954 -- Paying the account off is probably the best thing you could have done appearance-wise. That makes you look very good to future creditors.
3 years 9 months ago #6

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Replied by SAR1954 on topic Re: Collections Account / Credit Score

I was actually able to negotiate with them; when I paid in full they agreed to have it removed, they kept their word and did.
5 years 6 months ago #7

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Replied by Fallin Elizabeth on topic Re: Collections Account / Credit Score

If it is the same age as your bky do not pay it. It has to be removed in 7yrs. don't settle it. The creditor can not report any bad debt after 7 yrs. If they try to collect is illegal. Tell them not to contact you by certified mail. BKY accts are no longer collectible after the discharge date. You can take the collector to court if they continue to collection efforts.
5 years 6 months ago #8

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Replied by Roughdraft on topic Re: Collections Account / Credit Score

I have discovered over the last year that there was an account I didn?t place in my BK that is about to discharge, by complete accident. Not wanting to have a collections account on my credit with a balance, I recently made a payment (the amount is not high but enough that I can?t send it all at once). My credit score did a nose dive, UGH, I assume it?s because I paid on this collections account and its viewed as a late payment. Do I continue to pay it down or let it go? If I make another payment, will my credit score go down even more (thereafter, until make my last payment on this account)?


Sorry to hear about your drop in score. Collections agencies are notorious for "re-aging" your account. What happens sometimes is that if an account on your report had matured, it impacts your scores less, like in your case, you pay it suddenly and it appears 'newer' than it actually is, as they report your recent activity. Don't feel bad, sometimes this occurs as it changes from one collections agency to another, so it can affect your credit one way or another. It is weird to say, but sometimes it is just better not to pay old accounts in hopes that they will fall off. Since you have already made a payment, I would think it would be best to call and ask them that if you pay it off (usually has to be in full) will they remove it from your credit. They may say yes, but ask for it in writing as you can use that later to show the credit bureaus. You can always challange it once its been paid, but sometimes it works sometimes it doesn't. There are lots of different rules on what is supposed to be reported and you can only challange so much at a time, or they disreguard your challanges, so seek help, or read more about that. It's hard, especially when you are a responsible person, but know that it will get better again, especially if you continue to practice good credit habits.
6 years 8 months ago #9

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Replied by SAR1954 on topic Re: Collections Account / Credit Score

Thanks for the feedback. I am coming out of my BK with 2 Major credit cards, one from a local credit union and one from US Bank, both of which I received while still in my bankruptcy and have good credit lines. I also have two car loans with good rates of around 5% from the credit union and a personal loan from the credit union. For store cards, I have a Macy's Card, and a VS Card (both with a zero balance). So, at this point I feel like I have established great credit diversity that maybe some would be surprised I accomplished while still being in a Ch.13 but at this point I know I just need to get that collections paid for and in about a year’s time should bounce back.. Patients have never been my strong point though.
6 years 8 months ago #10

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Replied by patrick12 on topic Re: Collections Account / Credit Score

By making the payment you basically gave up your rights of having the account included in your discharge, however, what you may consider is disputing it with all three major credit bureaus and see if you can have it deleted from your file all together, you may be suprised by the outcome? Either way, its paid, and it will show as such, as your other accounts age, along with your paid collection, your credit score will rebound quickly, just be sure not to open any more accounts and keep your inquires to a minimum, coming out of a bankruptcy is basically like starting over with no credit, and this time is more critical than any to be conservative in your thinking! Best of luck to you, and lets hope you get this matter resolved quickly!
6 years 8 months ago #11

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I have discovered over the last year that there was an account I didn’t place in my BK that is about to discharge, by complete accident. Not wanting to have a collections account on my credit with a balance, I recently made a payment (the amount is not high but enough that I can’t send it all at once). My credit score did a nose dive, UGH, I assume it’s because I paid on this collections account and its viewed as a late payment. Do I continue to pay it down or let it go? If I make another payment, will my credit score go down even more (thereafter, until make my last payment on this account)?
:worried:
6 years 8 months ago #12

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